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Inflation rises unexpectedly to four-month high

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Emma Rowley
London Telegraph
Nov 16, 2010

Bank of England Governor Mervyn King has had to dig out his headed notepaper once more to write a letter to the Chancellor explaining why UK inflation is too high.

Official figures out on Tuesday showed annual consumer price index (CPI) inflation rose 3.2pc in October, more than a percentage point above the 2pc target in October. Analysts had expected it to hold steady at 3.1pc.

On the month, consumer prices rose 0.3pc, again slightly more than the 0.2pc increase expected.

That rise was led by higher petrol costs, a sharp jump in the price of computer games, and the fact that reductions in overdraft charges last October were not repeated last month.

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This article was posted: Tuesday, November 16, 2010 at 10:58 am

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